Digital Drives Music Sales Recovery

The global recorded music industry has just enjoyed its first year of growth since 1999.

Revenues rose by 0.3 percent to $16.5 billion, boosted by downloads, subscriptions and other legal channels.

The improvement was driven by digital revenues, which enjoyed a 9 percent rise to $5.6 billion, now accounting for about 34 percent of global industry revenues.

The number of people paying to use subscription services grew 44 percent in 2012 to 20 million.  Subscription revenues are expected in 2012 to account for more than 10 percent of digital revenues for the first time.

Download sales increased in volume by 12 percent globally in 2012 and represent around 70 percent of overall digital music revenues. 

Two years ago major international download and subscription services were present in 23 markets, which has subsequently increased to more than 100.

Digital channels now account for the majority of record companies’ income in an increasing number of markets including India, Norway, Sweden and the U.S.

Many non-digital revenue channels are also increasing.  Performance rights income increased in value by an estimated 9.2 percent in 2012 and now accounts for about 6 percent of overall industry revenues, up from 3 percent in 2007.